The Toronto Transit Commission says it has met the city’s requirement to cut its operating budget by 2.6 per cent this year– without cutting existing service levels.

The commission says it will be able to reduce spending without reducing existing service levels– only cancelling a planned service increase for September – largely though falling health-care benefit claims made by employees.

To bridge the gap, which amounted to $15.8 million this year, eight changes are being made to how the TTC does business:

  • Employees with an employer-paid cellphone will no longer have a desk landline, saving $300,000.
  • Overtime spending will be cut by $800,000.
  • Training and travel budget will be cut by $500,000.
  • Fewer employees will be put on standby, saving $600,000.
  • Converting IT contractors to employee positions and spending less on materials including office furniture will save $1 million.
  • Cancelling the September service increases will save $1.5 million. The TTC says ridership this year is lower than projections by about eight million rides, meaning the expansion is no longer needed.
  • Health-care claims by employees are trending downward this year, meaning the budget for them can be reduced by $10.3 million.

In July, council ordered all city agencies to cut their spending for the year by 2.6 per cent.

But the red ink will persist in 2017 despite these budget cuts, the commission says.

The TTC says it is looking at a budget gap of $172.6 million for next year, even after accounting for a draw from their stabilization reserve, lower than expected diesel fuel costs and lower PRESTO card fees.

“We determined that if all of our agencies could find the 2.6 per cent, we’d be able to balance the budget this year,” Budget Chief Gary Crawford told CTV Toronto.

“There is always that opportunity to dig a little deeper and find that money if you’re willing to look for it.”

Riders said they want to see the TTC spend more money on upgrading daily service.

“I think they should do something about it because a lot of people depend on the TTC," Elaine Jone said.

“I think that they should be using more of the tax money instead of the public’s money,” Surinder Birdi, another TTC rider, told CTV Toronto.

The commission says it will propose ways to eliminate this gap when it presents a budget to the TTC board later in the fall.

With files from Natalie Johnson.